Cheaper to buy a home in the city than commute as rail fares soar

Soaring rail fares could spell the end of the commuter town as price increases swallow up the benefits of cheaper housing, experts predict.

Many workers could actually save money by living in the city â even though homes often cost far more, a new study reveals.

The rising costs of train tickets means it’s now cheaper to buy a house in the city (Picture: Alamy)

In some towns, the cost of two standard class annual season tickets will dwarf mortgage repayments on a typical semi-detached house when the new fares take effect next year.

Although London and the south-east will be hit hardest, the impact of the rises will be felt by commuters across Britain.

The studyâs findings are based on the triplewhammy rise of eight per cent in national rail fares alongside a seven per cent increase in Londonâs Oyster card prices and five per cent in station car park charges.

It found it will be more than Â£100 month dearer for London professionals to live in a town such as Colchester than settle in parts of London â where houses cost Â£130,000 more.

Couples from the Essex town will have to stump up to £990 a month to travel to work in central London, while those in Greenwich pay just £197.

Because of the difference, it will work out cheaper to commute from Greenwich while paying Â£1,700 a month on a mortgage â even though a similar property in Colchester costs Â£1,000.

Jonathan Haward, of County Homesearch, the agency behind the study, said: âWith the government focused on extensive house building beyond the London green belt, the future availability of affordable family homes will only continue to conflict with the cost of travelling to and from them.â

A spokesperson from the Association of Train Operating Companies said: ‘We know that these are tough times for a lot of people. The average commuter will pay around £3 more a week next year.

‘The Government has decided that many fares need to rise above inflation to help pay for more trains, better stations and faster services, while reducing the amount taxpayers have to contribute.’